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For this review assignment to work properly you must have 'CALCULATION OPTIONS' set to 'MANUAL'
To set 'CALCULATION OPTIONS':1) under 'FORMULAS' tab2) in 'CALCULATION' section click 'CALCULATION OPTIONS' 3) select 'MANUAL'
For a new set of questions: 1) under 'FORMULAS' tab2) in 'CALCULATION' section click 'CALCULATE NOW'
top right icon
ANSWERS ARE ON LAST THREE SHEETS FOR REFERENCE
Complete the following transactions that are on the "Transactions" tab. I recommend printing the Blank Financial Statemnts and Blank T Accounts and do them by hand. You are also provided with a set of Financial Statements and T Accounts which have the solutions on them. After completeing the transactions on your own, check the solution. Remember, once you recalculate as described above, a new set of numbers are generated which changes the solution. Before you begin, it would be a good idea to also print the transactions and the solutions so you have something to compare your answer to. Once you are satisfied with your answer, you can recalculate and obtain a new set of numbers. Then try it again. Do this as many times as you like. Good Luck!
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For this review assignment to work properly you must have 'CALCULATION OPTIONS' set to 'MANUAL'
2) in 'CALCULATION' section click 'CALCULATION OPTIONS'
2) in 'CALCULATION' section click 'CALCULATE NOW'
ANSWERS ARE ON LAST THREE SHEETS FOR REFERENCE
Complete the following transactions that are on the "Transactions" tab. I recommend printing the Blank Financial Statemnts and Blank T Accounts and do them by hand. You are also provided with a set of Financial Statements and T Accounts which have the solutions on them. After completeing the transactions on your own, check the solution. Remember, once you recalculate as described above, a new set of numbers are generated which changes the solution. Before you begin, it would be a good idea to also print the transactions and the solutions so you have something to compare your answer to. Once you are satisfied with your answer, you can recalculate and obtain a new set of numbers. Then try it again. Do this as many times as you like. Good Luck!
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Opening Balances:Cash 28,000 Accounts Receivable 3,500 Prepaid Insurance - Property, Plant & Equipment 134,700 Accounts Payable 11,700 Bank Loan 2,400 Unearned Revenue - Owner's Equity 152,100
Transactions:
1 Performed Services for Cash 4,600
2 Provided services - billed on account 3,900
3 Prepay insurance for the year 2,900
4 Customer paid previous months accounts receivable 1,750
5 Deposit money form customers who have paid in advance 4,000
6 Record telephone expense paid with credit card 200
7 Purchase Property Plant & Equipment on account 41,800
8 Recognize unearned revenue as earned 4,000
9 Recognize prepaid insurance for the month 242
10 Record depreciation expense for the month 2,245
11 Borrowed money from the Bank 20,400
12 Owner Invested Money into the business 7,200
13 Owner withdrew funds for personal use 4,400
14 Accrue for interest on bank loan due next month 1,000
15 Paid Salaries for the month by cheque 3,000
16 Took a client out for a meal and paid cash 100
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Do not use a Contra Account
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Income StatementRevenue
Expenses
Telephone Expense Insurance Expense Salary expense Interest Expense Entertainment Expense Maintenance Meals Expense Depreciation
Total Expenses Net Profit (Loss)
Balance SheetAssetsCurrent Assets
Cash Accounts Receivable Prepaid Insurance Property, Plant & Equipment
Total Assets
LiabilitiesAccounts Payable Interest Payable Unearned Revenue Bank Loan
Total Liabilities
Owner's EquityOpening Add: Capital Add: Profit (Loss) Less: Drawings Closing Owner's Equity
Total Liabilities + Owner's Equity
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BALANCE SHEET
ASSETS
Increase (DR) Decrease (CR)Cash
Opening Balance
Sub-Total TOTAL:
Increase (DR) Decrease (CR)Accounts Receivable
Opening Balance
Sub-Total TOTAL:
Increase (DR) Decrease (CR)Prepaid Insurance
Opening Balance
Sub-Total TOTAL:
Increase (DR) Decrease (CR)Property, Plant & Equipment
Opening Balance
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Sub-Total TOTAL:
Do this Check: A = L + OETotal Assets
Total Libilities Owners' Equity
OWNER'S EQUITYOpening Owner's Equity ADD: Capital ADD: NET PROFIT ( LOSS) LESS: Owners' Drawings Ending Owners' Equity
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BALANCE SHEET
LIABILITIES
Decrease (DR) Increase (CR)Accounts Payable
Opening balance
Sub-Total TOTAL:
Decrease (DR) Increase (CR)Bank Loan
Opening balance
$ - Sub-Total TOTAL:
Decrease (DR) Increase (CR)Unearned Revenue
Opening balance
Sub-Total TOTAL:
OWNER'S EQUITY
Decrease (DR) Increase (CR)Capital
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Opening balance
Sub-Total TOTAL:
Increase (DR) Decrease (CR)Drawings
Opening Balance
Sub-Total TOTAL:
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Decrease (DR) Increase (CR)Interest Payable
Opening balance
Sub-Total TOTAL:
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INCOME STATEMENT
Decrease (DR)Service Revenue
Increase (DR) Decrease (CR) Increase (DR)Telephone Expense Insurance Expense
Sub-Total $ - Sub-TotalTOTAL: TOTAL:
Increase (DR) Decrease (CR) Increase (DR)Salary expense Interest Expense
Sub-Total $ - Sub-TotalTOTAL: TOTAL:
Increase (DR) Decrease (CR) Entertainment Expense
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Increase (DR)Maintenance
Sub-Total $ - $ - TOTAL: $ -
Sub-TotalTOTAL:
Increase (DR) Decrease (CR) Increase (DR)Meals Expense Depreciation
Sub-Total Sub-TotalTOTAL: TOTAL:
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INCOME STATEMENT
Decrease (DR) Increase (CR)Service Revenue
Sub-Total TOTAL:
Increase (DR) Decrease (CR)Insurance Expense
Increase (DR) Decrease (CR)Interest Expense
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Increase (DR) Decrease (CR)Maintenance
$ -
Increase (DR) Decrease (CR)Depreciation
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INCOME STATEMENT
Decrease (DR)Service Revenue
Increase (DR) Decrease (CR) Increase (DR)Telephone Expense Insurance Expense
6 $ 200
Sub-Total $ 200 $ - Sub-TotalTOTAL: $ 200 TOTAL:
Increase (DR) Decrease (CR) Increase (DR)Salary expense Interest Expense
15 $ 3,000
Sub-Total $ 3,000 $ - Sub-TotalTOTAL: $ 3,000 TOTAL:
Increase (DR) Decrease (CR) Entertainment Expense
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Increase (DR)Maintenance
Sub-Total $ - $ - TOTAL: $ -
Sub-TotalTOTAL:
Increase (DR) Decrease (CR) Increase (DR)Meals Expense Depreciation
16 $ 100
Sub-Total $ 100 $ - Sub-TotalTOTAL: $ 100 TOTAL:
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INCOME STATEMENT
Decrease (DR) Increase (CR)Service Revenue
1 $ 4,600 2 $ 3,900 8 $ 4,000
$ - Sub-Total $ 12,500 TOTAL: $ 12,500
Increase (DR) Decrease (CR)Insurance Expense
9 $ 242
$ 242 $ - $ 242
Increase (DR) Decrease (CR)Interest Expense
14 $ 1,000
$ 1,000 $ - $ 1,000
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Increase (DR) Decrease (CR)Maintenance
$ - $ - $ -
Increase (DR) Decrease (CR)Depreciation
10 $ 2,245
$ 2,245 $ - $ 2,245
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BALANCE SHEET
ASSETS
Increase (DR) Decrease (CR)Cash
Opening Balance $ 28,000 1 $ 4,600 3 $ 2,900 4 $ 1,750 13 $ 4,400 5 $ 4,000 15 $ 3,000 11 $ 20,400 16 $ 100 12 $ 7,200
Sub-Total $ 65,950 $ 10,400 TOTAL: $ 55,550
Increase (DR) Decrease (CR)Accounts Receivable
Opening Balance $ 3,500 2 $ 3,900 4 $ 1,750
Sub-Total $ 7,400 $ 1,750 TOTAL: $ 5,650
Increase (DR) Decrease (CR)Prepaid Insurance
Opening Balance $ - 3 $ 2,900 9 $ 242
Sub-Total $ 2,900 $ 242 TOTAL: $ 2,658
Increase (DR) Decrease (CR)Property, Plant & Equipment
Opening Balance $ 134,700 7 $ 41,800 10 $ 2,245
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Sub-Total $ 176,500 $ 2,245 TOTAL: $ 174,255
Do this Check: A = L + OETotal Assets $ 238,113
$ - Total Libilities $ 77,500 Owners' Equity $ 160,613
OWNER'S EQUITYOpening Owner's Equity $ 152,100 ADD: Capital $ 7,200 ADD: NET PROFIT ( LOSS) $ 5,713 LESS: Owners' Drawings $ 4,400 Ending Owners' Equity $ 160,613
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BALANCE SHEET
LIABILITIES
Decrease (DR) Increase (CR)Accounts Payable
Opening balance $ 11,700 6 $ 200 7 $ 41,800
$ - Sub-Total $ 53,700 TOTAL: $ 53,700
Decrease (DR) Increase (CR)Bank Loan
Opening balance $ 2,400 11 $ 20,400
$ - Sub-Total $ 22,800 TOTAL: $ 22,800
Decrease (DR) Increase (CR)Unearned Revenue
Opening balance $ - 8 $ 4,000 5 $ 4,000
$ 4,000 Sub-Total $ 4,000 TOTAL: $ -
OWNER'S EQUITY
Decrease (DR) Increase (CR)Capital
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Opening balance $ 152,100 12 $ 7,200
$ - Sub-Total $ 159,300 TOTAL: $ 159,300
Increase (DR) Decrease (CR)Drawings
Opening Balance 13 $ 4,400
Sub-Total $ 4,400 $ - TOTAL: $ 4,400
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Decrease (DR) Increase (CR)Interest Payable
Opening balance $ - 14 $ 1,000
$ - Sub-Total $ 1,000 TOTAL: $ 1,000
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Income StatementRevenue $ 12,500.00
Expenses
Telephone Expense $ 200 Insurance Expense $ 242 Salary expense $ 3,000 Interest Expense $ 1,000 Entertainment Expense $ - Maintenance $ - Meals Expense $ 100 Depreciation $ 2,245
Total Expenses $ 6,787 Net Profit (Loss) $ 5,713
Balance SheetAssetsCurrent Assets
Cash $ 55,550 Accounts Receivable $ 5,650 Prepaid Insurance $ 2,658 Property, Plant & Equipment $ 174,255
Total Assets $ 238,113
LiabilitiesAccounts Payable $ 53,700 Interest Payable $ 1,000 Unearned Revenue $ - Bank Loan $ 22,800
Total Liabilities $ 77,500.00
Owner's EquityOpening $ 152,100 Add: Capital $ 7,200 Add: Profit (Loss) $ 5,713 Less: Drawings $ (4,400)Closing Owner's Equity $ 160,613
Total Liabilities + Owner's Equity $ 238,113
InstructionsTransactionsBLANK FSBLANK T-Accnts BSBLANK T-Accnts IST-Accnts IS ANSWERST-Accnts BS ANSWERSFS ANSWERS